Correlation Between ICICI Bank and General Insurance
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By analyzing existing cross correlation between ICICI Bank Limited and General Insurance, you can compare the effects of market volatilities on ICICI Bank and General Insurance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ICICI Bank with a short position of General Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICICI Bank and General Insurance.
Diversification Opportunities for ICICI Bank and General Insurance
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ICICI and General is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding ICICI Bank Limited and General Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Insurance and ICICI Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ICICI Bank Limited are associated (or correlated) with General Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Insurance has no effect on the direction of ICICI Bank i.e., ICICI Bank and General Insurance go up and down completely randomly.
Pair Corralation between ICICI Bank and General Insurance
Assuming the 90 days trading horizon ICICI Bank Limited is expected to generate 0.33 times more return on investment than General Insurance. However, ICICI Bank Limited is 3.05 times less risky than General Insurance. It trades about -0.1 of its potential returns per unit of risk. General Insurance is currently generating about -0.09 per unit of risk. If you would invest 129,100 in ICICI Bank Limited on November 3, 2024 and sell it today you would lose (3,820) from holding ICICI Bank Limited or give up 2.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ICICI Bank Limited vs. General Insurance
Performance |
| Timeline |
| ICICI Bank Limited |
| General Insurance |
ICICI Bank and General Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICICI Bank and General Insurance
The main advantage of trading using opposite ICICI Bank and General Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICICI Bank position performs unexpectedly, General Insurance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in General Insurance will offset losses from the drop in General Insurance's long position.| ICICI Bank vs. The Investment Trust | ICICI Bank vs. The State Trading | ICICI Bank vs. Cholamandalam Investment and | ICICI Bank vs. Dodla Dairy Limited |
| General Insurance vs. AUTHUM INVESTMENT INFRASTRUCTU | General Insurance vs. Tube Investments of | General Insurance vs. Univa Foods Limited | General Insurance vs. Tata Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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